Maxygen Reports Fourth Quarter and Year End 2007 Financi...( REDWOOD CITY Calif. Feb. 12 First...)

REDWOOD CITY, Calif., Feb. 12 /PRNewswire-FirstCall/ . Maxygen, Inc. (Nasdaq: MAXY), a biotechnology company focused on the development of improved protein drugs, today reported financial results for the fourth quarter and year ended December 31, 2007. At December 31, 2007, cash, cash equivalents and marketable securities totaled $145.8 million compared to $182.9 million at December 31, 2006.

"After a productive year for MAXY-G34 in the clinic, we enter 2008 in a solid cash position," said Russell Howard, Ph.D., chief executive officer of Maxygen. "With consolidation of our operations almost complete and our ongoing cash utilization streamlined, we are well positioned to focus our resources on continued advancement of our two lead programs, MAXY-G34 for neutropenia and MAXY-VII for hemophilia."

Fourth Quarter Results

For the fourth quarter of 2007, Maxygen reported a net loss of $11.3 million, or $0.31 per share, compared to net income of $8.3 million, or $0.23 per share, in the fourth quarter of 2006. Fourth quarter 2006 results were substantially impacted by a $17.7 million gain on the sale of Maxygen's equity interest in Avidia, which was acquired by Amgen in October 2006. Fourth quarter 2007 results reflect the recognition of $7.7 million of related party revenue from Maxygen's license agreement with Codexis related to biofuels. The Codexis revenue was partially offset by $5.2 million of restructuring charges associated with the closure of Maxygen's Denmark facility as announced in November 2007.

Revenue for the fourth quarter 2007 was $11.0 million, an increase of $4.5 million compared to the fourth quarter 2006. The increase was primarily due to the aforementioned $7.7 million related party revenue, and i
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